SC rules on co-op franchises
THE SUPREME COURT (SC) on Thursday said electric cooperatives (co-op) have no constitutional right to an exclusive franchise within their coverage areas.
The full court in a July 30 decision junked the petition of the Iloilo Electric Cooperative, Inc. I, II and III (ILECO) that questioned the validity of Republic Act No. 11918.
The law expanded the franchise of another energy provider, MORE Electric and Power Cooperation to areas within ILECO’s franchise to promote competition.
The 1987 Constitution bars exclusive franchises, according to the decision written by Justice Rodil V. Zalameda.
It added that since a franchise is a privilege granted by the state and is not the exclusive property of the franchisee, it should always serve the common good.
The top court had yet to upload a copy of the ruling on its website. — Chloe Mari A. Hufana